Compass Group restructuring to cost it £50m

Levy Restaurants

Shares in contract caterer Compass Group fell yesterday after the firm warned that restructuring would cost it up to £50m over the next two years.

The FTSE 100 outfit revealed that plans to reduce the cost base in its offshore and remote business globally will cost it around £20m to £25m per year in 2015 and 2016, and will be included in operating profit.

The firm said that it now expects full-year operating margin to be flat this year as a result of the restructuring costs.

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Third quarter results from the company revealed that sales grew 5% year-on-year due to strong trading in North America and the acceleration of growth in Europe and Japan. It said improved performances from several countries, including the UK, drove the growth.

However, Compass admitted it had encountered a “more subdued” environment in emerging markets where it operates.

Compass is one of the world’s largest caterers, serving around four billion meals a year.

Tags : Compass GroupContract cateringfinancials
Andrew Seymour

The author Andrew Seymour

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